'Cash Handout Helps People More Than Vouchers'

New People's Party lawmaker Regina Ip said the government should offer a cash handout of HK$10,000 each to the people of Hong Kong, instead of giving them a new round of electronic spending vouchers.

In his budget blueprint on Wednesday, Financial Secretary Paul Chan said the first instalment of HK$5,000 will be made available in April, and the rest in the middle of the year.

Ip said for those who have lost their jobs or whose income have fallen sharply during the fifth wave of the pandemic, "giving them 10K cash is better than 10K e-consumption vouchers because if you use consumption vouchers, basically you are benefiting Octopus and retail and restaurants.

"A lot of people actually need money to pay rent or other expenses."

Simon Lee, an honorary institute fellow for Chinese University's business school, said he considered the launch of the new round of vouchers as more of a political move.

"The government performed so poorly in handing the fifth wave, so it's just the kind of gesture to please the community," he said. "I don't think this practice should be encouraged."

Lee also said the impact of the vouchers on the economy last year wasn't as significant as claimed by the financial secretary.

DAB lawmaker Holden Chow said the vouchers should be made available only when businesses reopen.

"Right now, we're still having a lot of restrictions. I think the government should really be cautious about the timing of giving out these consumption vouchers and make sure that these vouchers could be effectively in boosting the economy."